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PG&E Corporation (PCG) Q2 Earnings Beat, Revenues Up Y/Y

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PG&E Corporation (PCG - Free Report) reported adjusted operating earnings per share of $1.03 in second-quarter 2020, which surpassed the Zacks Consensus Estimate of 68 cents by 51.5%. The bottom line, however, declined 6.4% from the year-ago quarter’s reported figure.

Including one-time items, the company incurred a GAAP loss of $3.73 per share compared with a loss of $4.83 in the prior-year quarter.

Revenue Update

PG&E Corp’s total revenues of $4,533 million rose 15% from the year-ago quarter’s $3,943 million.
 
While electric revenues increased 16.6% from the prior-year quarter’s reported figure, natural gas revenues improved 10.1% year over year.

Operational Highlights

Operating expenses in the reported quarter totaled $4,251 million, which declined 43.9% from $7,583 million in second-quarter 2019. The decline was due to lower cost of electricity and wildfire-related claims.

The company reported an operating income of $282 million against the operating losses of $3,640 million incurred during the previous year’s second quarter.

Interest expenses in second-quarter 2020 summed $199 million compared with $60 million in the year-ago period.

Pacific Gas Electric Co. Price, Consensus and EPS Surprise

PG&E Corporation issued 2020 guidance for consolidated GAAP losses of 99 cents to $1.05 per share, which includes non-core items.

On a non-GAAP basis, the guidance range for 2020 core earnings is $1.60-$1.63 per share. The Zacks Consensus Estimate for the company’s 2020 earnings, pegged at $1.32 per share, lies below the company’s guided range.

Zacks Rank

PG&E Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

Edison International (EIX - Free Report) reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%.

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